|View single post by Texas Defender|
|Posted: Wed Sep 12th, 2012 09:04 pm||
Tariffs, which had traditionally been the major source of revenues for the Federal Government, were in no way sufficient to fund the war effort. In addition to raising the tariffs, excise taxes were reintroduced. A new progressive federal income tax was established.
Tax History Project: The Civil War (A detailed discussion of funding of the war).
As for the tariffs themselves, they had been lowered in 1857. But when those pesky southerners left the Congress, proponents of the Morrill Tariff were able to get their bill adopted on March 2, 1861. This greatly increased tariff rates by about 70% initially. Instead of 17% overall and 21% on dutiable items only, the rates became 26% overall and 36% on dutiable items. By the end of the war, the numbers were 38% and 48%. The tariffs raised about $345 million total during the war, over $75 million annually. (Ad valorem tax revenues for the entire country in 1860 were $56 million).
By comparison, something over $3 billion was raised during the war by bond sales and printing of greenbacks. (It cost the Federal Government over $3 billion to run the military alone during the war). The Federal Government spent about $66 million in 1861, but by 1865, it was spending at a rate of over $1 billion annually.
The United States Senate Committee on Finance: About - History (See Civil War Years).
Did tariffs really cause the Civil War? The Morrill Act at 150
(An interesting article discussing slavery and tariff issues)
Last edited on Wed Sep 12th, 2012 11:30 pm by Texas Defender